Japan Fair Trade Commission to Approve Shipbuilder Mergers and Acquisitions, Says No Issue Under Antimonopoly Law

The Yomiuri Shimbun

15:44 JST, November 14, 2025

The Japan Fair Trade Commission plans to issue its standpoint that it will approve mergers and acquisitions among domestic shipbuilders and joint procurement of critical raw materials like rare earth elements in the aim of strengthening economic security. With China in mind, it will also permit information sharing among domestic companies when they receive acquisition or partnership proposals from overseas firms. The JFTC aims to enhance the international competitiveness of Japanese companies and prevent technology being leaked overseas.

Companies have reportedly hesitated to engage in such actions due to fears of violating the Antimonopoly Law for infringing on merger restrictions or forming cartels.

In this regard, the JFTC aims to help strengthen economic security by clarifying its own stance. It will present the view soon at an expert panel meeting of the Economy, Trade and Industry Ministry.

The JFTC is expected to tell the panel that the mergers between domestic companies whose operations are already in the state of oligopoly in the domestic market, will not be an issue under the antimonopoly law if there are strong competitors overseas, thereby having a relatively small impact on competition.

To ensure international competitiveness, the need for large-scale investment through integration is growing. Businesses have expressed concerns that merger regulations hinder their integration discussions. The JFTC aims to help facilitate such discussions.

The JFTC will also tell the panel that it will permit information exchange and joint procurement regarding critical minerals and other materials, in preparation for potential supply disruptions of raw materials, which are high dependency on supply from the oversea, such as rare earths. Regarding cases where companies exchange information or engage in joint procurement to secure economic security due to severe shortages of critical raw materials, the JFTC will indicate that it will not be an issue under the antimonopoly law in principle.

To prevent technology leakage through acquisitions by or business alliances with foreign companies, the JFTC will also clarify that information exchange between a company receiving a proposal for partnership or acquisition from a foreign company and other companies, relevant ministries and agencies or industry associations does not raise issues under the antimonopoly law.